Why Oil and Gas Investments?
While there is large financial risk investing in oil and gas, it is also extemely lurcrative with advantage opportunities of over 25:1 return on investment as global demand of oil increases. World crude oil demand grew an average of 1.76% per year from 1994 to 2006, with a high of 3.4% in 2003-2004. After reaching a high of 85.6 million barrels (13,610,000 m3) per day in 2007, world consumption decreased in both 2008 and 2009 by a total of 1.8%, due to rising fuel costs and the economic correction. World demand for oil is projected to increase 21% over the historically high 2007 levels by 2030 (104 million barrels per day from 86 million barrels), due in large part to increases in demand from the transportation sector. According to the IEA's 2013 projections, growth in global oil demand will be significantly outpaced by growth in production capacity over the next five years.
Although demand growth is highest in the developing world, the United States is the world's largest consumer and soon will be the largest producuer of petroleum. Between 1995 and 2005, U.S. consumption grew from 17,700,000 barrels per day to 20,700,000 barrels per day. China, by comparison, increased consumption from 3,400,000 barrels per day to 7,000,000 barrels per day, in the same timeframe. The Energy Information Administration (EIA) stated that gasoline usage in the United States may have peaked in 2007, in part due to increasing interest in and mandates for use of biofuels and energy efficiency.
Click Here for a brief overview of the advantages you can capitalize on when investing in Oil and Gas.